Losing a Fortune Often Comes Down To One Thing: Family

American beer dynasty the Stroh family was worth $9 billion at the height of its success in the 1980's. Following a string of poorly advised business investments, continued family demands for dividends to fund lavish lifestyles, and questionable decisions on management succession, little remains of this once proud family enterprise founded in the 1850's. Business families need to carefully plan for succession if they wish to avoid becoming one of the statistics which suggest only a very small proportion make it past the 2nd generation.

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Heirs are not automatically qualified, competent or visionary leaders, Dr. McGerr said, and when power is passed solely from fathers to sons, those who might better manage an empire — like women family members or outsiders — are excluded.